Telecom Commission, the highest decision making body of the Department
of Telecommunications (DoT), is likely to discuss telecom merger and
acquisitions (M&A) guidelines in its meeting on October 29,
according to official sources.
"The merger and acquisition guidelines are on the agenda," the sources said.
Telecom Minister Kapil Sibal had said earlier the guidelines will be issued by November 1.
The sources said that DoT is considering allowing market share of up to 50 per cent of the resultant entity in case of merger and acquisitions from 35 per cent earlier.
The DoT sources also said that "transfer of licences consequent to compromise, arrangements or amalgamation of companies shall be allowed where market share for access services in respective service area of the resultant entity is up to 50 per cent".
The companies will also be allowed to retain two blocks of 3G spectrum in respective areas as a result of the merger, they added.
The resultant entity has to surrender the excess spectrum within one year of the permission being granted failing which action will be taken by the government, the sources said.
The guidelines, if approved, is likely to benefit telecom players such as Bharti Airtel, Vodafone and Idea Cellular. As per the guidelines, incumbent service providers participating in consolidation activities will have to convert their old licence to unified licence, they added.
In the revised guidelines, a DoT panel on M&A has proposed one year time for completing transaction and exemption from cross holding norms that prohibits incumbent companies from having more than 9.9 per cent stake in competing firms.
"The merger and acquisition guidelines are on the agenda," the sources said.
Telecom Minister Kapil Sibal had said earlier the guidelines will be issued by November 1.
The sources said that DoT is considering allowing market share of up to 50 per cent of the resultant entity in case of merger and acquisitions from 35 per cent earlier.
The DoT sources also said that "transfer of licences consequent to compromise, arrangements or amalgamation of companies shall be allowed where market share for access services in respective service area of the resultant entity is up to 50 per cent".
The companies will also be allowed to retain two blocks of 3G spectrum in respective areas as a result of the merger, they added.
The resultant entity has to surrender the excess spectrum within one year of the permission being granted failing which action will be taken by the government, the sources said.
The guidelines, if approved, is likely to benefit telecom players such as Bharti Airtel, Vodafone and Idea Cellular. As per the guidelines, incumbent service providers participating in consolidation activities will have to convert their old licence to unified licence, they added.
In the revised guidelines, a DoT panel on M&A has proposed one year time for completing transaction and exemption from cross holding norms that prohibits incumbent companies from having more than 9.9 per cent stake in competing firms.
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